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Tristan Scores A Birdy In Reviving Irish Residential Market

Tristan Capital Partners' recent acquisition of a rental apartment complex under development at the former Dún Laoghaire Golf Course in Dublin is a first for the reviving Irish residential market.

Opportunitistic funds face fairly rough media coverage in Ireland. References to ‘vultures’ still fly well in Ireland, long after the term has fallen out of common usage elsewhere.

It is notable, therefore, that news of the €72 mln acquisition of the 197-unit Neptune high-quality apartment project on the former golf course, off Glenageary Road in an affluent part of south Dublin, by Tristan Capital Partners’ Episo 4 opportunity fund wasn’t completely panned.

On the contrary, it was 'good news' for the housing supply in Dublin, according to Donald MacDonald, director of Hooke & MacDonald. Of course, he would say that, as Hooke & MacDonald acted for Cosgrave Group, vendor of Neptune and developer of the wider NAMA-backed Honeypark scheme.

But MacDonald backed up his assertion: ‘It is the first transaction of its kind in the Irish market whereby an entire multi-family/build-to-rent scheme has been specifically designed for this sector of the housing market and sold in advance of construction completion.'

Modern amenities
Neptune is due for occupation in February 2017. The six-storey building is part of Cosgrave’s broader Honeypark development of the former golf course, the rest of which is not included in the transaction. Overlooking a five-acre landscaped park with a lake and a playground area, the property will consist mostly of two-bedroom apartments, with the balance made up by one- and three-bedroom units. The basement and lower ground floors of the building will provide parking for 219 vehicles.

The property is designed to 'A' rating energy efficiency standard. The average unit size within the property is a generous 85 m2. On-site amenities include full concierge service, gym facilities and residents' suite. The Honeypark development includes a newly-built neighbourhood shopping centre.

Supply shortage
Dublin is growing and needs 12,000 new homes annually to keep pace. Less than a quarter of the target was built last year, and tighter mortgage terms for first-time buyers are driving more people to high-quality rental homes.

Tristan and Dublin-focused partner SW3 Capital are among a number of cross-border parties who have swooped in to feed this demand. Neptune is the first buy for the JV that aims to create 'a new and unique living alternative' under the Vert brand. The fund will seek to acquire further assets in the growing 'build-to -rent' sector as it continues to mature and suitable opportunities arise.

Perhaps, the case can be made: better two nest-builders active on the ground than a carrion-eater circling overhead.